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Here's Why Marvell Technology (MRVL) Fell More Than Broader Market
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The latest trading session saw Marvell Technology (MRVL - Free Report) ending at $49.02, denoting a -0.91% adjustment from its last day's close. This move lagged the S&P 500's daily loss of 0.17%. On the other hand, the Dow registered a loss of 0.58%, and the technology-centric Nasdaq increased by 0.27%.
The chipmaker's stock has dropped by 5.41% in the past month, falling short of the Business Services sector's loss of 5.22% and the S&P 500's loss of 3.95%.
Analysts and investors alike will be keeping a close eye on the performance of Marvell Technology in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.40, indicating a 29.82% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.4 billion, down 8.85% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.53 per share and revenue of $5.52 billion, which would represent changes of -27.83% and -6.67%, respectively, from the prior year.
Any recent changes to analyst estimates for Marvell Technology should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Marvell Technology currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Marvell Technology has a Forward P/E ratio of 32.28 right now. This represents a premium compared to its industry's average Forward P/E of 22.05.
Also, we should mention that MRVL has a PEG ratio of 3.53. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. MRVL's industry had an average PEG ratio of 1.39 as of yesterday's close.
The Technology Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 91, placing it within the top 37% of over 250 industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Here's Why Marvell Technology (MRVL) Fell More Than Broader Market
The latest trading session saw Marvell Technology (MRVL - Free Report) ending at $49.02, denoting a -0.91% adjustment from its last day's close. This move lagged the S&P 500's daily loss of 0.17%. On the other hand, the Dow registered a loss of 0.58%, and the technology-centric Nasdaq increased by 0.27%.
The chipmaker's stock has dropped by 5.41% in the past month, falling short of the Business Services sector's loss of 5.22% and the S&P 500's loss of 3.95%.
Analysts and investors alike will be keeping a close eye on the performance of Marvell Technology in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.40, indicating a 29.82% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.4 billion, down 8.85% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.53 per share and revenue of $5.52 billion, which would represent changes of -27.83% and -6.67%, respectively, from the prior year.
Any recent changes to analyst estimates for Marvell Technology should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Marvell Technology currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Marvell Technology has a Forward P/E ratio of 32.28 right now. This represents a premium compared to its industry's average Forward P/E of 22.05.
Also, we should mention that MRVL has a PEG ratio of 3.53. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. MRVL's industry had an average PEG ratio of 1.39 as of yesterday's close.
The Technology Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 91, placing it within the top 37% of over 250 industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.